30.9 C
Sunday, January 26, 2020
Home Business Foreign Business Trump tweets increasingly moving markets – report

Trump tweets increasingly moving markets – report


NEW YORK: US President Donald Trump has been tweeting more than ever in recent months and is also moving financial markets more, according to a new report by JPMorgan Chase that analyzed the businessman-turned-politician’s Twitter habit.

US President Donald Trump. AP PHOTO

The report unveiled a new “Volfefe” index that measures volatility after presidential tweets and said
Trump’s market-moving missives on trade and monetary policy surged in August, exacerbating volatility in the bond market.

Analysts studied movements in the 10-year US Treasury market at a variety of intervals, including one minute, five minutes and one hour.

“By this metric, ‘market-moving tweets’ have ballooned in frequency this August,” the report said.
“Importantly, a few episodes have been associated with a sharp rise in implied volatility.”

The name of the index is a riff on a tweet from May 2017 that mentioned “covfefe,” which is not a word. Trump has sometimes been called the “Tweeter in Chief.”

Market-moving tweets tend to receive fewer “likes” and retweets than Trump’s other tweets, the report said. Top market-moving words include “China,” “billion” and “products,” followed by “dollars,” “tariff,” and “trade.”

The report did not analyze individual tweets during August, which was also a rocky period for the stock market due to the escalating US-China trade war and an inversion of the US Treasury yield-curve, often a harbinger of recession.

August Trump tweets included the shock announcement on August 1 that the US would impose new tariffs on $300 billion of Chinese goods, as well as a series of escalating attacks on Federal Reserve Chairman Jerome Powell.

Trump blamed the Fed chief for the inverted yield curve on August 14 and questioning whether Powell was a “bigger enemy” than Chinese leader Xi Jinping on August 23.

The JPMorgan report observed that Trump has maintained “a remarkably consistent daily presence” on
Twitter since taking office, averaging more than 10 tweets a day.

“The highest volume of tweets over the past four years has in fact come in recent months,” the report said.

However, the faster pace of tweets is partly accounted for by retweets of messages sent by others, according to the report.

China reports 1,975 confirmed cases of new coronavirus, 56 deaths

BEIJING: Chinese health authorities announced on Sunday that 1,975 confirmed cases of pneumonia caused by the novel coronavirus, including 324 in critical conditions, had...

Taal Volcano alert lowered to Level 3 

The Philippine Institute of Volcanology and Seismology (Phivolcs) lowered the alert  status of Taal Volcano from Level 4 to 3 on Sunday. The agency said the...

El Nido in Huffpost’s list of top travel-friendly destinations

The charming island of El Nido in Palawan was included in the list of travel-friendly destinations of 2020 compiled by Huffpost. In the list titled...

Xi calls situation grave as China scrambles to contain virus

BEIJING: China's leader on Saturday called the accelerating spread of a new virus a grave situation, as cities from the outbreak's epicenter in central...

Sara Duterte in US for leadership program vs terrorism

AS President Rodrigo Duterte continued his tirades against the United States (US), his daughter and Davao City Mayor Sara Duterte is in Washington D.C....